1. Canadian Water Treatment: Challenges and Opportunities John Nicholson, M.Sc., P.Eng. Editor, Canadian Water Treatment

2. Topics of Discussion Topics Reputation Legislation Aboriginal Communities Bottled water Environmental Stewardship Growth of the industry Key Questions Where we are today? Where we want to be? How do we get there?

3. Reputation of the Industry Where are we now? Current State Marketing by innuendoes, half-truths, and deception brings the entire industry down Bottled water companies question the safety of tap water POU/POE providers question health impacts from PET water bottles City of Kawartha Lakes, City of London Brita TV Campaign

4. Reputation of the Industry Where do we want to be? The Future Well respected industry known for caring about the customers, the community, and the environment Ethical, professional industry Comparison – law firms, pharmaceutical industry Comparison – used car sales, tow truck companies Recognized leading organization in the world Providers of safe, clean, water

5. Reputation of the Industry How do we get there? The Secret Plan Advertising “Statements, either verbal or written, which are false, misleading, deceptive, fraudulent, or which falsely or deceptively disparage publicly or privately supplied water, bottled water, water quality improvement products or systems or other competitors of competitive produces, shall not be used.” Focus on benefits of your product/service  Your ship doesn’t rise when you sink another Strive for perfection

6. Legislation Where are we now? Current State Federal government’s limited role Patchwork of provincial regulations POU/POE systems and proposed CSA standard B483.1 Testing requirements for bottled water compared to municipal water

7. Legislation Where do we want to be? The Future Federal regulation that is fair, understandable and science-based Clear, enforceable rules for bottled water Clear, enforceable rules for POU/POE systems Clear, enforceable rules for municipal drinking water systems Avoidance of different rules in different provinces (i.e., labeling of bottled water)

8. Legislation How do we get there? The Secret Plan Works together to ensure clear, enforceable rules are legislated that are fair and do not hinder commerce Inform municipal, provincial, and federal politicians about the views of industry with recommendations for what would work best Counteract reactionary, ill-conceived ideas

9. Aboriginal and Rural Communities Where are we Now? Current State Over 600 First Nation Communities in Canada, more than 75% have drinking water systems posed a “significant risk to the quality or safety of drinking water” Over $2 billion has been spent by the federal government over the last five years to upgrade water treatment systems

10. Aboriginal Communities Where do we want to be? The Future Safe, clean water for aboriginal communities and growth market for the Canadian industry

11. Aboriginal Communities How do we get there? The Secret Plan Phil Fontaine, National Chief of the Assembly of First Nations gave his vision and plan for partnership Opportunity to partner directly with First Nations on water treatment Follow the Membertou example Siemens Agreement with INAC to promote aboriginal employment

12. Bottled Water Where are we now? Current State Exponential growth Attacks from activists and “environmentalists” City of Charlottetown will continue to drink bottled water (CBC, March 12 th, 2007) United Church of Canada ban on bottled water (2006) Province of Ontario to begin charging bottled water companies taking water

13. Bottled Water Where do we want to be? The Future Continued growth Favoured beverage choice by consumers Exports to the world World-recognized leader Educated public

14. Bottled Water How do we get there? The Secret Plan Promote bottled water based on refreshment, hydration, taste, purity, convenience Locate facilities near water resources with “willing hosts” Quick and intelligent response to unfair criticisms Promote virtues of export

15. Environmental Stewardship Where are we now? Current State Attacks from “environmentalists” PET bottles are a strain on the environment Export of water disrupts the water cycle of water basins Water industry is eroding the public trust in tap water Public control of water is at risk from private water companies

16. Environmental Stewardship Where do we want to be? The Future Public understanding that packaging for water is no different for any other beverage Science-based decisions on exports of water from river basins Safe and clean water available to everyone, regardless of economic situation

17. Environmental Stewardship How do we get there? The Secret Plan Biodegradable, fully-compostable, and petro-chemical free plastic water bottles + 1 Water, Montreal Environmental Leadership Aquathin Corp, POU/POE supplier based in Florida, wins Emerald Award from Broward County for environmental responsible practices Ontario Environmental Leaders Program Promotion of science-based decision-making for water exports and water re-use/recycling Promotion of clean and safe water for everyone

18. Growth Where are we now? Current State Exponential growth in bottled water Exponential growth in bottled water POU/POE business migrating to bottled water POU/POE business migrating to bottled water Home/Office Water Cooler market is mature (1 to 2% growth) Home/Office Water Cooler market is mature (1 to 2% growth) Big box retailers selling Asian-made systems Big box retailers selling Asian-made systems Coke and Pepsi Coke and Pepsi

19. Growth Where we want to be? Continued growth New markets Asia, Russia, the U.S. New products Multi-barrier systems Water-in-car systems Up-sell and cross-sell opportunities

20. Growth How do we get there The Secret Plan Promotion for water exports Development of new technologies Multi-barrier filters WHO support of POU/POE systems Focus on niche markets

21. Conclusions Canadian Water Treatment magazine is your partner As editor, I need your suggestions, feedback, and criticisms Let’s work together to promote the industry

22. Thank you